What is the Cardium Shale Formation? The Cardium
Shale is a shale/sandstone formation located in Alberta, Canada and extends up into Eastern British Columbia and down into
Montana. The Cardium Formation is getting a lot of publicity lately due to companies exploring this oil field for oil.
The Cardium Shale runs below and to the west of the Exshaw Formation which is also located in Alberta and British Columbia

The Cardium Shale runs below the first white speckled shale while
the Exshaw runs above the second white speckled shale. Weird names I know but you will be hearing a lot more about
the speckled shales in the coming years because they are starting to test these zones for oil & gas as well. The
Cardium Formation has been producing oil & natural gas for years and has been a huge driver for jobs and resounces for
Canada's economy. The Cardium Formation is a mix of sandstone & shale and is part of the Western Canadian Sedimentary
Basin. Natural Gas can be found in Western Alberta while the main oil zone is located throughout the whole shale field
from Alberta down to Montana and all the way up to Northeast British Columbia. The Cardium Shale could end up being
a huge oil discovery in Canada when all said and done. The main oil producing area is called the Pembina Oil field which
was discovered in 1953 and named after the Pembina River. New technology such as horizontal drilling have made formations
like the Cardium Shale really shine lately.

Shale Formations:
In the Pembina Field, the main zone is the Cardium Formation with the Fernie Formation and the Viking Formation also contributing.
In the Natural Gas portion of the Cardium Shale, other producing areas would be the Muskiki Formation, Wapiabi Formation,
Blackstone Formation, and the Kaskapau Formation.

Pembina
Oil Field - The Pembina Oil Field, which is the largest oil field in Alberta Canada, is located in the Cardium Shale
Formation. As I stated above, the Pembina Field has been producing oil since 1953. The Pembina oil field is named
after the Pembina River and is also part of the Viking Formation. Horizontal drilling has caused a recent boom in this
area and companies are now scrambling to rework old wells.

For
an update on the current drilling activity going on in the Cardium Shale, view the information below. It is really interesting
to see what the companies are saying about the Cardium Shale and we update this as the news comes out.

Cardium Shale Map - Cardium Formation

Alberta Canada Oil & Gas Map

Companies Drilling in the Cardium
Shale - Cardium Shale Stocks

ConocoPhillips COP - In the liquids-rich Cardium area at Western
Canada, we'll be drilling nine operated wells and participating in six non-operated wells during the fourth quarter. These
wells are almost all oil-producing with some associated gas.

Delphi Energy ( DPGYF.PK) (DEE.TO) - At Bigstone, the Company drilled two horizontal Cardium oil wells (1.1 net)
and one vertical Cardium oil well (1.0 net) with the horizontal wells having a gross, combined seven day average production
rate of 705 bbls/d and 2,500 mcf/d of associated gas (1,120 boe/d). Currently Cardium light oil production at Bigstone is
approximately 900 boe/d (54 percent oil) net to Delphi;

Cardium Light Oil Program

At Bigstone, the Company drilled, completed
and tied-in two horizontal wells (1.1 net) targeting Cardium light oil and offsetting two successful horizontal wells drilled
during the first quarter of 2010. Average production rates of the first quarter wells are performing at or above Company expectations
with 30 and 60 day average rates of 247 boe/d and 216 boe/d respectively. Early production rates from the two wells drilled
in the third quarter are similar to the best well drilled in the first quarter. Subsequent to the end of the third quarter,
the first well of a three well non-operated horizontal program (0.2 net wells) targeting this same light oil pool has begun
drilling operations. One vertical Cardium light oil well (1.0 net)
was also drilled, completed and tied-in during the third quarter with a 30 day average production rate of 30 boe/d. This well
completes a farm-in obligation, earning one section of land, and extends the productive Cardium trend 2.4 kilometres to the
southeast of established production. Delphi controls approximately 17 net sections of prospective Cardium acreage in
the Bigstone area.

Talisman Energy TLM - Talisman Energy is drilling for oil in the Cardium Shale -Talisman
continued its piloting program in the Cardium area of Alberta, drilling six gross (4.1 net) wells in the oil and liquids rich
window. Three of these wells are in the early phase of testing and the remaining wells will be completed after breakup.

Forest Oil FST - Forest Oil has acreage that is prospective to the Cardium Formation but they won't get to test this until atleast 2011
as they are testing other formations such as the Nikanassin Formation.

Canadian Deep Basin - Nikanassin Resource
Play

Forest holds approximately 214,000 gross and 127,000
net acres in the Nikanassin Resource play. The area provides access to a minimum of ten different stacked-pay producing intervals,
many of which can be completed with production commingled in a single well bore.

During the quarter, Forest completed four vertical wells that had average initial 24-hour production rates of 9 MMcfe/d.
The results from these four wells bring Forest's average 24-hour initial production rates from its Nikanassin Resource program
to 11 MMcfe/d. Through production log information relative to the stacked-pay intervals, Forest has identified specific zones
for which it initiated a horizontal drilling program to isolate completions in the most productive intervals. Forest's first
horizontal test had a 24-hour initial production rate of 6.4 MMcfe/d from a single interval. This first horizontal well was
drilled with a 2,200 foot lateral and completed with 7 fracture stimulation stages. The well was not drilled to planned specifications
of a 4,000 foot lateral and 12 fracture stimulation stages due to slower than expected drilling rates and operational time
constraints. Forest intends to evaluate and monitor the horizontal well performance with plans to conduct additional horizontal
operations in the second half of 2011.

Exxon Mobil (XOM) - Exxon Mobil (XOM) is testing the Cardium Shale -We also hold a large heritage
position in tight oil plays in western Canada, including the Cardium and Viking plays. We are actively drilling in the Cardium and achieved first oil production in the fourth quarter of 2011. We are currently drilling in the Viking
and have additional drilling planned this year to further delineate this tight oil resource.

Devon Energy (DVN) - Devon Energy (DVN) Cardium Shale Update - Our most encouraging results from our 2011 program came in at
the Ferrier Area where we are targeting cardium oil. We drilled 8 wells in the area and saw 30-day IP rates as high as 940
barrels of oil equivalent per day.